China to cut taxes by more than 800 billion yuan in 2018

Beijing. March 6. Silkroadnews - This year China will reduce taxes on businesses and individuals by more than 800 billion yuan (around US$126 billion), Prime Minister Li Keqiang said, Xinhua reports.
China will give priority to tax cuts in manufacturing and transportation sectors and raise the annual sales revenue threshold for small-scale taxpayers, Li noted.
A policy of uniform corporate income tax exemption on the overseas earnings of Chinese businesses will be put into implementation. More logistics companies will enjoy preferential tax treatment on their use of land for storage facilities, the report says.
Last year, as a part of the reform and replacement of business tax, the value-added tax (VAT) saved 918.6 billion yuan. The introduction of value added tax instead of business tax used for 60 years simplifies tax procedures and helps avoid double taxation. In the pilot regime, the reform was launched in Shanghai in 2012 and then extended to the whole country in May 2016.
At the same time, this year China will ease the non-tax burden for market participants by more than 300 billion yuan this year, which lightening the burden on enterprises, thus, they will be able to focus their resources on their development.